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Chinese AI Chipmaker Cambricon Denies Revenue Guidance Rumors After Stock Plunge
Cambricon Technologies has firmly refuted circulating online rumors regarding its revenue projections, following a sharp decline in its stock price. The Beijing-based artificial intelligence chipmaker issued a statement today clarifying that it has not released any revenue guidance figures for the current year.
The company was responding to rumors that had spread through investment circles claiming Cambricon had held a small, private meeting where it projected annual revenue of CNY20 billion (USD2.9 billion) for the year. These purported figures fell significantly below market expectations, which had ranged between CNY30 billion and CNY50 billion.
“The information circulating on the internet is false,” Cambricon stated during the midday trading break. “The company has never organized any such event recently and has not issued any annual or quarterly revenue guidance data. Please refer to the information publicly disclosed by the company for relevant information.”
The market reaction to the rumors was swift and significant. Cambricon’s shares on the Shanghai Stock Exchange [SHA: 688256] tumbled as much as 14.4 percent during morning trading before closing 9.2 percent lower at CNY1,128 (USD162.38) per share.
The incident highlights the volatility surrounding China’s emerging AI chip sector, where investor sentiment can shift dramatically based on speculation. Cambricon has been one of the prominent domestic competitors in China’s effort to develop indigenous AI chip capabilities amid ongoing tech tensions with the United States.
Just days earlier, on January 30, Cambricon had announced positive financial projections for the previous year. The company expects to report its first annual profit since its founding in 2016, with net earnings estimated between CNY1.9 billion and CNY2.2 billion (USD273.8 million to USD316.7 million). Revenue is projected to have increased by 411 to 496 percent year-on-year, reaching between CNY6 billion and CNY7 billion.
The company attributed this performance to increasing demand for computing power across the AI industry. Cambricon noted that its competitive product offerings had helped expand its market presence and accelerate commercial deployment of AI applications.
However, the company’s quarterly performance data reveals a more nuanced picture. Cambricon’s earnings momentum began to slow in the third quarter of last year, with net profit declining 17 percent to CNY567 million (USD81.7 million) compared to the second quarter. Revenue also dipped slightly by 2 percent to CNY1.7 billion during the same period.
The fourth quarter projections suggest this trend may be continuing, with Cambricon expecting net profit to have decreased between 4 and 57 percent from the previous quarter, landing somewhere between CNY245 million and CNY545 million. Revenue for the fourth quarter is estimated between CNY1.4 billion and CNY2.4 billion, representing anything from a 19 percent decrease to a 38 percent increase compared to Q3.
This fluctuating quarterly performance comes against the backdrop of China’s push for technological self-sufficiency in critical sectors like semiconductors and AI chips. As one of China’s leading AI chip designers, Cambricon’s performance is closely watched as an indicator of the country’s progress in developing domestic alternatives to foreign technology.
Analysts note that while the AI chip market in China continues to expand rapidly, companies like Cambricon face intense competition both domestically and internationally, as well as challenges related to ongoing supply chain constraints in the semiconductor industry.
The company has urged investors to rely solely on officially disclosed information rather than market rumors when making investment decisions.
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10 Comments
Interesting to see Cambricon refute the revenue guidance rumors. It’s important for companies to be transparent and accurate when communicating financial projections to avoid market volatility.
Agreed. Maintaining investor trust is crucial, especially for a high-profile tech company like Cambricon.
It’s commendable that Cambricon moved quickly to refute the revenue guidance rumors. Maintaining transparency and credibility is critical, especially for a high-growth tech company.
Yes, this type of proactive communication helps strengthen investor confidence in the company’s leadership and financial reporting.
This is a good example of how misinformation and speculation can negatively impact a company’s stock price. I’m glad Cambricon swiftly addressed the rumors to set the record straight.
Absolutely. Proactive communication from management is key to dispelling market rumors and maintaining credibility.
The AI chip sector has been volatile lately. It’s understandable that investors are closely watching Cambricon’s performance and any guidance updates. Hopefully this incident doesn’t erode confidence.
You raise a good point. Cambricon will need to be extra diligent in its future disclosures to rebuild trust after this episode.
I’m curious to see how Cambricon’s business fares amidst the broader challenges facing the semiconductor industry. This revenue guidance rumor seems like an unnecessary distraction.
Agreed. The company should remain focused on executing its strategy and delivering results, rather than getting bogged down in market speculation.